We live in very economically unstable times. This has probably always been the case, but for a number of reasons economic conditions now seem especially unpredictable. The question is not why this is so, but how we should respond. Are we taking a defensive stance or should we take a proactive approach?
When recessions are likely, there are usually two types of leaders: visionaries (strategists) and those driven by financial considerations. Financially oriented people often take a defensive stance in their decisions, trying to eliminate risk. However, visionaries operate from a different perspective. They view the looming recession as an opportunity to attract customers and increase market share, often taking an offensive stance rather than reacting defensively.
Followers of Jesus Christ have an advantage in determining how to respond: we know the One who knows the future, our Heavenly Father. In the Old Testament, Daniel was asked to interpret a disturbing dream of the Babylonian king. Daniel said to him: “The great God has made the king know what will happen after this!” (Daniel 2:45). We can ask the Lord for similar wisdom as we plan for the future.
Key personnel decisions. When a recession looms, people driven by financial considerations typically cut or lay off staff. But the strategist sees the situation differently. After the terrorist attacks of September 11, 2001, the airline industry was devastated. Almost all major airlines have begun mass layoffs. However, Southwest Airlines did not do this. Their visionary leaders sought to ensure the performance of all their personnel. While expensive in the short term, it allowed the company to expand quickly and profitably in the long term.
In 1 Peter 5:2 we read the instruction: “Shepherd the flock of God that is among you, overseeing it, not under compulsion, but willingly and in a godly manner, not for vile gain, but out of diligence.” Downsizing is sometimes inevitable, but visionary leaders take the long view, looking after their people well even in challenging times.
Considering market share. If a company has the financial strength, a recession may be an ideal time to expand. An example from the past illustrates this point. While Blockbuster Video stores still dominated the video market, Netflix made a bold move during the 2008 recession. Their video streaming business not only gained market share, but also caused Blockbuster's demise.
We find great wisdom in Ephesians 5:15: “Take heed therefore, and walk carefully, not as fools, but as wise.” If you have influence within a company and see that your competitors are abandoning their sales and marketing efforts, this could be a great opportunity to increase market share.
Relationships with suppliers are at risk. Many financially oriented leaders risk jeopardizing supplier relationships during a recession. They may begin to demand price concessions without paying their suppliers as quickly. However, a strategist can take a long-term view of the situation. Offering to pay suppliers early, or at least on time, can win goodwill that can help lead to price concessions or better terms. This approach can also help build stronger relationships in the future.
As Proverbs 3:27 says, “Do not withhold good from someone in need when your hand is able to do it.” Instead of using and abusing your suppliers, consider paying them early or at least on time. You will most likely form a friend for the future. We live in the present, but we must always remember the future.
Copyright 2023, Non-Traditional Business Network. Adapted with permission from UBN Integrity Moments. Visit: www.unconventionalbusiness.org UBN is faith in action at work, serving the international small business community.
Questions for reflection/discussion
NOTE. If you have a Bible and want to read more, consider the following texts: Psalm 37:3-7; Proverbs 2:6, 3:5-6, 11:14, 15:22, 19:20, 20:18; Matthew 6:25-34; James 1:5-8
Difficult task
Making decisions, both personal and professional, can be very difficult during times of economic turmoil. Who can you rely on for advice and guidance when faced with stressful and difficult circumstances? If you are a member of a CBMC group or a group of devoted followers of Jesus Christ, identify who you can turn to as trusted advisors in times of need.